Great Canadian Gaming Corporation operates casinos, racetracks, slot machines, and other entertainment venues. Its shares trade on the TSX. The following is an excerpt from the 2011 financial statement note 31, which itemizes and quantifies the impact of switching to IFRS.

TRANSITION TO IFRS

b) Reconciliation of Canadian GAAP to IFRS

IFRS 1 requires an entity to reconcile equity and comprehensive income from historical Canadian GAAP to IFRS at the Transition Date and as at, and for the period ending on, the last Canadian GAAP reporting date. The following represents the reconciliations from historical Canadian GAAP to IFRS for the respective periods noted for equity, net loss and comprehensive loss:

Instructions
As an independent analyst, provide a critical analysis of the reconciling items. (Hint: Access the financial statements on www.sedar.com and review the rest of note 31, which explains the differences.) Compare and contrast the prechangeover GAAP with IFRS.

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RECONCILIATION OF EQUITY As at Note December 31,2010 January 1, 2010 $434.4 $419.1 Shareholders' equity under Canadian GAAP Differences increasing (decreasing) reported shareholders' equity: Impairments of long-lived assets Fair value as deemed cost Contingent consideration Amortization Income taxes (10.6) (10.9) (26.8) (10.9) 2.2 2.4 IV VII 6.7 Shareholders' equity under IFRS $401.1 $403.4 RECONCILIATION OF NET LOSS For the year ended Net loss under Canadian GAAP Differences in GAAP decreasing (increasing) reported net loss: Note December 31, 2010 $ (21.9) 16.2 Impairments Contingent consideration Amortization Foreign currency translation adjustment Stock-based compensation Income taxes 2.2 0.4 0.6 (4.3) IV VI VII Net loss under IFRS $ (7.9) RECONCILIATION OF COMPREHENSIVE LOSS For the year ended Comprehensive loss under Canadian GAAP Differences in GAAP decreasing (increasing) reported comprehensive loss: December 31, 2010 $ (21.8) Differences in net loss, net of tax 14.0 (0.4) $ (8.2) Foreign currency translation adjustments loss under IFRS